GB Group (GBG) has an impressive track record in delivering on its 23 February 2016 strategy to build a leading global identity data intelligence firm. The integration of recent acquisitions, the ongoing international roll-out and the current product investment should continue to support double-digit revenue growth and a resumption of margin expansion from FY17. The 28x FY17e P/E rating, which acknowledges the positive outlook, is justified.
An excellent track record
GBG now generates c 26% of sales from faster-growing international markets and over the last three years, revenues have almost doubled while earnings have tripled. The acquisitions of Loqate (April 2015) and DecTech (May 2014) added new technologies in global address verification, geo-coding and fraud management, expanded geographic reach in the US and Asia Pacific, brought strategic channel partner relationships and are feeding cross-selling opportunities elsewhere in the group.
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